Supply or service

[srinivasan.K kuppuswamy]

Importing of pallets under Customs Notification 104/94 and after packing exports takes place.

Will it be supply of goods or we need to pay service tax under reverse charge mechanism.

If ST paid whether it is eligible for cenvat credit.

Regards

 

K Srinivasan

 

AI Summary

Reverse charge service tax on foreign logistics for packing: assess cenvat credit eligibility and export refund claims.
Issue whether packing materials imported duty exempt and used for packing goods exported from an Export Warehouse give rise to a taxable service or a supply of goods turns on the packing activity and principal/agent status. The taxpayers paid service tax under the reverse charge mechanism on transaction and rental charges to a foreign logistics provider; key questions are eligibility to take cenvat credit of service tax paid at the factory and entitlement to refund under Notification No. 41/2012 ST for other export services used in export warehouse exports.